The Supreme Court is Set to Protect the Fed but Abandon the FTC

The Supreme Court’s recent handling of cases involving the Federal Trade Commission (FTC) and the Federal Reserve Board has profound implications for the independence of both regulatory agencies. While the Court’s decision to protect the Federal Reserve’s autonomy might appear to uphold institutional integrity, its refusal to do the same to safeguard the FTC’s independence marks a dangerous precedent. The independence Congress intended, designed to depoliticize expert regulation to protect competition and consumers, is now in jeopardy.

With these decisions, the Court has now signaled its intent to serve as an illegitimate policymaker. The Court’s decision to allow Federal Reserve Board Governor Lisa Cook to temporarily maintain her post demonstrates that the Court is willing to twist itself into a pretzel to appease President Trump. The Court is poised to either ignore its own precedents or make up new legal theories to justify giving the executive branch the unconstitutional levels of power it wants — except, apparently, when it comes to the Fed. What’s going on?

The president has attempted to fire two commissioners from the Federal Trade Commission, an independent agency vital for regulating the technology sector. While one commissioner eventually resigned during this legal process, the other – Rebecca Kelly Slaughter – was terminated by the executive branch. Meanwhile, President Trump turned his attention to a different independent agency, firing Governor Lisa Cook from the Federal Reserve Board. Both officials sued and won reinstatement, but when the matter eventually reached the Supreme Court’s desk, the outcomes were absurdly different: The Court allowed Ms. Cook to keep her job while litigation continues, yet refused to allow Ms. Slaughter to do the same.